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Thursday 28 July 2022
Nebraska Drug Dealer Caught in Southeast Missouri Sentenced to Serve over 20 Years in Federal Prison for Trafficking MethamphetamineRead the Press Release
CAPE GIRARDEAU - The United States Attorney's Office announced that Russell E. Ritter-Westerfield, age 45, of Omaha, Nebraska, was sentenced to serve 262 months in federal prison for the offense of Possession with Intent to Distribute Over 500 Grams of Methamphetamine. Ritter-Westerfield appeared for his sentencing hearing today before United States District Judge Stephen N. Limbaugh, Jr. at the federal courthouse in Cape Girardeau, Missouri.
According to court documents, law enforcement officials arrested Ritter-Westerfield at a motel in Marston, Missouri in June 2018. A cooler was found in the motel room, which contained approximately four pounds of methamphetamine. At his guilty plea hearing earlier this year, Ritter-Westerfield admitted that he intended to distribute the methamphetamine. Ritter-Westerfield has an extensive criminal history, including multiple felony drug-trafficking convictions from the State of Nebraska. After serving his 262-month sentence, he will be placed on supervised release for a period of ten years.
This case was investigated by the Southeast Missouri Drug Task Force and the New Madrid County Sheriff’s Office. Assistant United States Attorney Jack Koester handled the prosecution for the government.
Navajo Nation Man Charged with MurderRead the Press Release
SALT LAKE CITY – Randy Lansing, 38, of Aneth, an enrolled member of the Navajo Nation Indian Tribe, was charged by a federal grand jury in the District of Utah with second degree murder within Indian Country for unlawfully killing a member of the Navajo Nation on April 23, 2022, while on Tribal lands.
Lansing has pleaded not guilty to the charges contained in the indictment and his trial is currently scheduled for September 6, 2022.
Assistant United States Attorneys from the United States Attorney’s Office are prosecuting the case. Special Agents from the FBI, along with Patrol Officers and Investigators from the Navajo Nation, are conducting the investigation.
An indictment is a formal accusation of criminal conduct, not evidence. Defendants are presumed innocent unless and until proven guilty.
Nashville Man Convicted of Armed Methamphetamine Trafficking in Southeastern KentuckyRead the Press Release
LONDON, Ky. – A Nashville man was convicted on Thursday, by a federal jury sitting in London, of possession with intent to distribute methamphetamine, possession of a firearm in furtherance of drug trafficking, and possession of a firearm by a convicted felon.
The jury convicted Marlon Johnson following a three-day trial and about two hours of deliberations.
According to evidence at trial, on November 18, 2019, Johnson led law enforcement officers with the Knox County Sheriff’s Department on a high-speed chase, through residential streets in Corbin, before crashing into a gate and parked car. Johnson then fled on foot, into a cemetery, where he was ultimately apprehended. During a search of his vehicle, law enforcement located more than a kilogram of methamphetamine and a loaded firearm.
Marlon Johnson was indicted on December 20, 2018, following an investigation by the DEA, Knox County Sheriff’s Department, and Operation UNITE.
Johnson will appear for sentencing on November 29, 2022. He faces from 15 years to life in federal prison. However, the Court must consider the U.S. Sentencing Guidelines and the applicable federal sentencing statutes before imposing its sentence.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; J. Todd Scott, Special Agent in Charge of the DEA Louisville Field Division; and Sheriff Mike Smith of the Knox County Sheriff’s Department made the announcement. The United States was represented in the case by Assistant U.S. Attorney Andrew H. Trimble.
This case was prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, U.S. Attorney Shier coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
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Mogadore Man Found Guilty of Threating to Retaliate Against WitnessRead the Press Release
A Mogadore man was found guilty on Wednesday, July 27, 2022, of obstructing justice by retaliating against a witness. Andrew F. Dodson, 33, was convicted by a federal jury following a three-day trial before Judge Donald C. Nugent in Cleveland.
According to court records and evidence presented at trial, in July 2021, federal authorities began an investigation into Dodson following his arrest for OVI and possession of chemicals that could be used to make explosive devices. During the investigation, Dodson lied to federal authorities and pleaded guilty to making false statements in November 2021. Court records state that Dodson was allowed to remain on bond and in the community following his guilty plea.
During this time, Dodson came into possession of a witness statement given to federal authorities during the prior investigation. Court documents show that Dodson then contacted and threatened the witness with the intent to retaliate due to the witness’s cooperation. Dodson was later arrested.
Dodson is scheduled to be sentenced on November 28, 2022, and faces a maximum possible sentence of 20 years in prison.
This case was investigated by the FBI Cleveland. This case was prosecuted by Assistant U.S. Attorneys Brian S. Deckert and Jason W. White.
Middleburg Man Sentenced to More Than 20 Years in Federal Prison for Using A Minor to Produce Sexually Explicit ImagesRead the Press Release
Jacksonville, Florida – U.S. District Judge Marcia Morales Howard today sentenced Harold Clare Potter III (49, Middleburg) to 20 years and 6 months in federal prison, followed by 15 years of supervised release, for using a minor to produce sexually explicit images. Potter had pleaded guilty on April 25, 2022. Potter was arrested on October 1, 2021, and has been detained throughout the proceedings in this case.
According to court documents, an officer with the Clay County Sheriff’s Office (CCSO) responded to allegations of a minor being videotaped while showering. Minor Victim 1 (MV1) reported that she had stayed at Potter’s residence from June to July 2021, and, while getting out of the shower, she noticed a black cellphone under the door recording her. When she left the bathroom, Potter told her if she told anyone he would make it look like she was lying. MV1 went to her room and did not leave until another adult came home. During the course of her visit, Potter made several remarks to MV1, including “You turn me on. If you knew what you were doing to me you would run away. You turn me on.”
A CCSO officer later responded to Potter’s home in response to a call that he was suicidal. When the officer made contact, Potter admitted to recording MV1 while she was in the bathroom at his home and that “she turns me on.” He admitted to still having the same cellphone, which he had a family member provide to another officer. He also admitted there were child exploitation materials on the phone.
Following additional investigation, including reviewing Potter’s cellphone and speaking with him, images of MV1 were located on Potter’s cellphone. Potter also admitted to placing a smoke detector hidden camera in the bedroom that had exclusively been used by MV1 in an attempt to obtain nude photographs of her.
“Grown men who prey on the vulnerability and innocence of children are the worst kind of human being,” said HSI Jacksonville Assistant Special Agent in Charge K. Jim Phillips. “Through our law enforcement partnerships, we will never rest in our efforts to catch these predators and make our communities safer for our children.”
This case was investigated by the Clay County Sheriff’s Office and Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Ashley Washington.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Melbourne Man Sentenced to 14 Years in Prison for Distributing Two Images Depicting the Sexual Exploitation of A ChildRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron has sentenced Robert Lee Ripley (47, Melbourne) to 14 years in federal prison and 10 years of supervised release for distributing images of child sexual abuse. The court also ordered Ripley to pay $5,000 in restitution. Ripley had pleaded guilty on February 24, 2022.
According to court documents, on June 24, 2021, Homeland Security Investigation Task Force Officers rescued a female child, approximately five years old, that had been sexually abused by a male subject. The male subject had produced images and videos depicting the sexual abuse of the child. A forensic analysis of the cellphone belonging to the male subject revealed a series of chat sessions through KIK, where he shared images depicting the abuse of the child victim. Specifically, the abuser shared with Ripley, the moderator of a KIK chat group, two images depicting the sexual abuse of the minor. During the chat, it was obvious the abuser had access to the child victim, and he was actively producing those images. After receiving the photos of the victim, Ripley stated, “Yummy,” and then shared the images with the chat group, thereby perpetuating the harm to the victim. After his arrest, Ripley admitted that he would receive images and videos of child pornography through the KIK application and would share those images and videos with other KIK users.
“This predator participated in the online exploitation of children and has caused irreparable harm,” said HSI Orlando Assistant Special Agent in Charge David Pezzutti. “The vile actions of child predators will not go undetected, and thanks to the painstaking, tireless efforts of HSI Cocoa Beach Child Exploitation Taskforce and HSI Jacksonville, pedophiles will be held accountable to the fullest extent.”
This case was investigated by the Brevard County Sheriff’s Office and Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Ilianys Rivera Miranda.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
McAllen pawn shop owner pleads guilty to selling firearmsRead the Press Release
McALLEN, Texas – A 67-year-old man has admitted to charges of providing ammunition to a prohibited person, announced U.S. Attorney Jennifer B. Lowery.
Daniel Gallegos pleaded guilty to selling thousands of rounds of various ammunition.
Gallegos is the long-time owner and operator of Danny’s Pawn and Sporting Goods in McAllen.
As part of his plea, Gallegos admitted to selling approximately 280 rounds of .50 BMG caliber ammunition as well as more than 5,000 rounds of various sizes, ranging from .223 caliber to .50 caliber. He provided all of it to someone he knew to be a prohibited person – an individual who was illegally and unlawfully present in the United States - on four separate occasions during 2021.
Gallegos also admitted that he knew the person was prohibited under federal law from possessing the ammunition because the individual was illegally present in the United States.
U.S. District Judge Ricardo H. Hinojosa will impose sentencing Oct. 18. At that time, Gallegos faces up to 10 years in federal prison and a possible $10,000 maximum fine.
Homeland Security Investigations and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorney Robert L. Guerra, Jr. is prosecuting the case.
The Department of Justice launched Operation Guardian targeting firearms and illegal export of firearms in November 2019. On April 8, 2021, President Biden issued executive orders specifically targeting crimes involving guns.
Lincoln Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
Acting United States Attorney Steven Russell announced that Andrew Alan Spiehs, 42, of Lincoln, Nebraska, was sentenced today to 17 ½ years (210 months) in federal prison for conspiracy to distribute 500 grams or more of methamphetamine mixture and 50 grams or more of methamphetamine (actual) by Senior United States District Judge Richard G. Kopf. Following his release from prison, Spiehs will serve five years on supervised release. There is no parole in the federal system.
Information provided to law enforcement indicated Spiehs was involved with the distribution of at least 150 grams (approximately 5 ¼ ounces) of actual or pure methamphetamine and at least 1.5 kilograms, (3 pounds) of methamphetamine mixture in the Lincoln area between August of 2017 and January 31, 2019. On January 31, 2019, investigators made a controlled delivery of a package containing methamphetamine to Spiehs at his Lincoln residence. That package had been intercepted in California and contained at least 100 grams of methamphetamine actual.
Spiehs was released from federal custody on conditions in June of 2019. However, he absconded and was a fugitive for more than two years before being arrested again in Wyoming in August of 2021. As a result, Spiehs received an enhancement to his sentencing range. Spiehs also received an enhancement for possession of a gun during the time he was involved in the drug conspiracy.
This case was investigated by the Lincoln/Lancaster County Narcotics Task Force.
Leader of “Genesis II Church of Health and Healing,” Who Sold Toxic Bleach as Fake “Miracle” Cure for Covid-19 and Other Serious Diseases, Extradited from Colombia to the United StatesRead the Press Release
Miami, Florida – Mark Grenon, 64, made his initial appearance today in federal court in Miami, Florida, after being extradited from Colombia. Grenon is charged—along with his three sons, Jonathan Grenon, 36, Jordan Grenon, 28, and Joseph Grenon, 34—with fraudulently marketing and selling “Miracle Mineral Solution,” a toxic industrial bleach, as a cure for COVID-19, cancer, Alzheimer’s, diabetes, autism, malaria, hepatitis, Parkinson’s, herpes, HIV/AIDS, and other serious medical conditions, and with defying federal court orders.
According to an indictment returned by a federal grand jury, the Grenons, all of Bradenton, Florida, manufactured, promoted, and sold a product they named Miracle Mineral Solution (“MMS”). MMS is a chemical solution containing sodium chlorite and water which, when ingested orally, became chlorine dioxide, a powerful bleach typically used for industrial water treatment or bleaching textiles, pulp, and paper. The Grenons claimed that ingesting MMS could treat, prevent, and cure COVID-19, according to the charges. The FDA, however, had not approved MMS for treatment of COVID-19, or for any other use. Rather, in prior official warning statements, the FDA had strongly urged consumers not to purchase or use MMS for any reason, explaining that drinking MMS was the same as drinking bleach and could cause dangerous side effects, including severe vomiting, diarrhea, and life-threatening low blood pressure. See https://www.fda.gov/consumers/consumer-updates/danger-dont-drink-miracle-mineral-solution-or-similar-products. In fact, FDA received reports of people requiring hospitalizations, developing life-threatening conditions, and even dying after drinking MMS.
The indictment further alleges that before marketing MMS as a cure for COVID-19, the Grenons marketed MMS as a miracle cure-all for dozens of other serious diseases and disorders, even though the FDA had not approved MMS for any use. The Grenons sold tens of thousands of bottles of MMS nationwide, including to consumers throughout South Florida, according to the allegations. They sold this dangerous product under the guise of Genesis II Church of Health and Healing (“Genesis”), an entity they are accused of creating to avoid government regulation of MMS and shield themselves from prosecution. According to charging documents, Genesis’ own websites describe Genesis as a “non-religious church,” and Defendant Mark Grenon, the co-founder of Genesis, has repeatedly acknowledged that Genesis “has nothing to do with religion,” and that he founded Genesis to “legalize the use of MMS” and avoid “going [ ] to jail.” The Genesis websites further stated that MMS could be acquired only through a “donation” to Genesis, but the donation amounts for MMS orders were set at specific dollar amounts, and were mandatory, such that the donation amounts were effectively just sales prices. The indictment alleges that the Grenons received more than $1 million from selling MMS.
The indictment also charges the Grenons with criminal contempt. The United States previously filed a civil case against the defendants and Genesis II Church of Health and Healing. See United States v. Genesis II Church of Health and Healing, et al., Case No. 20-21601-CV-WILLIAMS. In that civil case, the United States obtained court orders halting the Grenons’ distribution of MMS. According to charging documents, the Grenons willfully violated those court orders and continued to distribute MMS. The Grenons also allegedly threatened the federal judge presiding over the civil case, and threatened that, should the government attempt to enforce the court orders halting their distribution of MMS, the Grenons would “pick up guns” and instigate “a Waco.”
Furthermore, according to statements made in court by federal prosecutors in Miami, a search warrant was executed for Defendant Jonathan Grenon’s house at the time of his arrest, and officers discovered that the Grenons were manufacturing MMS in a shed in Jonathan Grenon’s backyard in Bradenton, Florida. Officers seized dozens of blue chemical drums containing nearly 10,000 pounds of sodium chlorite powder, thousands of bottles of MMS, and other items used in the manufacture and distribution of MMS. The government also recovered multiple loaded firearms, including one pump-action shotgun concealed in a custom-made violin case to disguise its appearance, according to prosecutors.
Trial is set to begin on September 12, in Miami, Florida, before Chief U.S. District Judge Cecilia M. Altonaga.
U.S. Attorney for the Southern District of Florida Juan Antonio Gonzalez and Assistant Commissioner of the FDA’s Office of Criminal Investigations Catherine Hermsen made the announcement.
Assistant U.S. Attorneys Michael B. Homer and John Shipley of the Southern District of Florida are prosecuting the case. FDA’s Office of Criminal Investigations investigated the case.
U.S. Attorney Gonzalez commends and thanks the government of Colombia for its assistance. U.S. Attorney Gonzalez also extends his gratitude to the Justice Department’s Office of International Affairs (OIA) and the Narcotic and Dangerous Drug Section (NDDS) Judicial Attachés in Bogota, Colombia for their substantial assistance in securing the arrest and extradition of Mark Grenon to the United States.
An indictment is a charging instrument containing allegations. A defendant is presumed innocent unless and until proven guilty in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 21-cr-20242.
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Leader of South Florida Drug-Trafficking Organization Sentenced to 169 Months in Federal PrisonRead the Press Release
Miami, Florida – Today, a federal district judge in Miami sentenced 42-year-old Palacio Valdes Farley to over 14 years in prison for conspiring to traffic marijuana, eutylone, and MDMA, as well as conspiring to launder proceeds of the illegal drug activity.
As part of his guilty plea to the charges earlier this year, Farley admitted that from about 2016 to 2019, he organized and led a six-member South Florida drug-trafficking organization (“DTO”). The DTO obtained marijuana from co-conspirators in California, and MDMA from a South Florida co-conspirator, then distributed the drugs in Florida. Farley also admitted that on August 3, 2019, while he was serving a prison sentence at Jackson Correctional Institute in Jackson County, Florida, another member of the DTO was arrested while attempting to smuggle marijuana, eutylone, and MDMA into the prison. The plan was for Farley to distribute the drugs to inmates. As to money laundering, Farley admitted that he conspired with members of the DTO and others to conduct financial transactions intended to disguise the origins of the drug trafficking proceeds.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, and John J. Bernardo, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announced the sentence that U.S. District Judge Kathleen M. Williams imposed today.
Other defendants in this case have received the following federal prison sentences: Pedro Ceballos Jaime received 120 months; Karen Xiomara Williams received 62 months; Lisa Flood received 44 months; Willie Hudson received 15 months; Robert Benton received 15 months; Denzel Wilson received 16 months; Shanequa Samuels received 24 months; and Emmanuel White received 27 months. Defendant Stephen Keane is set for sentencing on August 12, at 10:00 a.m. before U.S. District Judge Williams.
The FBI investigated this case, with assistance from Florida Department of Corrections, Office of Inspector General; Broward Sheriff's Office; Fort Lauderdale Police Department; Lauderhill Police Department; and United States Secret Service. Assistant United States Attorneys Dwayne E. Williams and Dayron Silverio are prosecuting the case. Assistant United States Attorney Annika Miranda is handling asset forfeiture.
This prosecution is a result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the highest-level drug traffickers, money launderers, and other priority transnational criminal organizations that threaten the citizens of the United States using a prosecutor-led, intelligence driven, multi-agency approach to combat transnational organized crime. The OCDETF program facilitates complex, joint operations by focusing its partner agencies on priority targets, by managing and coordinating multi-agency efforts, and by leveraging intelligence across multiple investigative platforms.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 19-cr-20667-Williams.
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Keshena Man Sentenced to 30 Years in Prison for Child Sexual Exploitation on the Menominee Indian ReservationRead the Press Release
Richard G. Frohling, United States Attorney for the Eastern District of Wisconsin, announced that on July 27, 2022, Senior United States District Judge William C. Griesbach sentenced Darwin Pamanet (age: 46) to 360 months in federal prison for child sexual exploitation. Pamanet formerly lived in Keshena, which is a community on the Menominee Indian Reservation. Following his prison sentence, Pamanet will serve the remainder of his life on supervised release.
According to court documents, on July 15, 2021, the defendant recorded himself sexually abusing an 8-year-old girl while at a residence on the Menominee Indian Reservation. The abuse was disclosed in early 2022 and led to the discovery of two additional young girls who were victims of the defendant’s crimes.
In sentencing the defendant, Judge Griesbach noted the “obvious need for a substantial sentence” for a “terrible offense.” Judge Griesbach stated the sentence was based on the magnitude of the offense and said “to do this to an innocent child is one of the most heinous crimes possible.” Judge Griesbach observed a strong need to protect the public from the defendant, and in response to a defense request for a lesser sentence, Judge Griesbach stated “some crimes are so unthinkable…that they have to receive a much higher sentence than a lot of other crimes.” Judge Griesbach also remarked upon the need to deter those who might consider similar actions.
The Menominee Tribal Police Department and Federal Bureau of Investigation investigated the case, which Assistant United States Attorney Andrew J. Maier prosecuted.
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Kanawha County Man Sentenced to Prison in Multi-State Methamphetamine ConspiracyRead the Press Release
CHARLESTON, W.Va. – Jonathan Gregory Bush, 39, of Charleston, was sentenced today to eight years and one month in prison, to be followed by three years of supervised release, for conspiracy to distribute methamphetamine.
According to court documents and statements made in court, Bush was a member of a multi-state methamphetamine distribution organization operating in and around Charleston. Bush admitted that he obtained large quantities of methamphetamine in Decatur, Georgia and distributed it in and around Charleston during the spring and summer of 2021. On July 19, 2021, law enforcement officers tracked Bush from Charleston to Decatur where they observed him meet with his supplier, co-defendant Ramon David Alston. After following Bush a short distance from Alston’s residence, officers stopped the vehicle and seized 913 grams of “ICE” methamphetamine.
The case is part of a long-term investigation of methamphetamine distribution that resulted in the conviction of 17 individuals for various drug and firearm offenses in three separate indictments. Bush, Alston and 12 others pleaded guilty. The remaining three, Timothy Wayne Dodd, Douglas Jonathan Wesley and Leo Antoine Smith, were convicted at trial.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI), the Charleston Police Department, the Kanawha and Putnam County Sheriff’s Departments, the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and the Metropolitan Drug Enforcement Network Team (MDENT).
United States District Judge Joseph R. Goodwin imposed the sentence. Assistant United States Attorneys Joshua Hanks and Alex Hamner prosecuted the case.
This prosecution was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case Nos. 2:22-cr-90 and 2:21-cr-00172.
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Kanawha County Man Pleads Guilty to Fentanyl CrimeRead the Press Release
CHARLESTON, W.Va. – Danise Maurice Fortune, 41, of St. Albans, pleaded guilty today to distribution of fentanyl.
According to court documents and statements made in court, Fortune sold approximately 11 grams of suspected heroin for $1,300 to a confidential informant in St. Albans on January 25, 2022. The West Virginia State Police Forensic Laboratory confirmed the controlled substance was approximately 9.2 grams of fentanyl with phencyclidine, also known as PCP.
Fortune is scheduled to be sentenced on November 9, 2022, and faces a maximum penalty of 20 years in prison, at least three years of supervised release and a $1 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Charleston Police Department, and the Kanawha County Sheriff’s Office.
Chief United States District Judge Thomas E. Johnston presided over the hearing. Assistant United States Attorney Ryan A. Keefe is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-69.
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KC Man Sentenced for Armed Carjacking That Resulted in Police Pursuit, Fatal CollisionRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man was sentenced in federal court today for his role in an armed carjacking that led to a high-speed chase in which he collided with another vehicle and killed another motorist.
Derrell M. Wade, 21, was sentenced by U.S. District Judge Stephen R. Bough to 13 years in federal prison without parole.
On Jan. 7, 2022, Wade pleaded guilty to one count of carjacking and one count of brandishing a firearm during a crime of violence. Co-defendants Michael A. Brown, 20, and Curtis R. Daniels, 20, both of Kansas City, Mo., also pleaded guilty to carjacking and each were sentenced to five years in federal prison without parole.
Wade and his co-defendants participated in a carjacking that occurred at approximately 10:35 p.m. on Aug. 24, 2021. Wade pressed the barrel of his gun against the forehead of the victim, identified in court documents as “T.R.,” and demanded the keys to his gold 2007 Prius. Another person took T.R.’s cell phone from his hand. T.R. was repeatedly struck in the back with an unknown object by a third person, and told to stay on his knees. The three men then fled in T.R.’s vehicle.
T.R. immediately contacted law enforcement, and used his wife’s cell phone to track his stolen cell phone, using the Find My Phone app. Police officers saw the stolen Prius driving southbound on Lister Avenue, passing over the main thoroughfare of East 23rd Street, at about 11:09 p.m. the same day. Officers pulled behind the vehicle, which was being driven by Wade, and the vehicle accelerated a high rate of speed away from the officers. Officers activated their emergency equipment and initiated a pursuit of the vehicle.
The stolen vehicle traveled at speeds up to 75 miles per hour and ran several stop signs during the pursuit. After running the stop sign at 23rd Street and Lawn Avenue, the Prius collided with another vehicle. This collision resulted in the fatality of an occupant from that vehicle and injuries to another person.
Wade attempted to run away but fell to the ground. As he was falling, he pulled a loaded Smith and Wesson 9mm semi-automatic handgun from his waistband and threw it in the grass.
Brown got out of the passenger side rear door of the Prius and began running toward Elmwood Avenue. He was found hiding in a residential backyard and arrested.
Daniels, who was sitting in the front passenger seat of the Prius, was arrested without incident.
This case was prosecuted by Assistant U.S. Attorney David A. Barnes. It was investigated by the Kansas City, Mo., Police Department and the FBI.
Operation LeGend
Operation LeGend is a federal partnership with local law enforcement to address the increase in homicides and violent crime in Kansas City, Mo., in 2020. The operation honors the memory of four-year-old LeGend Taliferro, one of the youngest fatalities during a record-breaking year of homicides and shootings. Additional federal agents were assigned to the operation from the FBI, Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the U.S. Marshals Service.
Justice Department Obtains Temporary Restraining Order to Prevent Tampa-Area Physician from Writing Opioid PrescriptionsRead the Press Release
A federal court issued a temporary restraining order prohibiting a Tampa-area physician from prescribing opioids and other controlled substances, the Department of Justice announced today.
In a complaint filed on July 18, and unsealed yesterday, the United States alleges that Dr. Neelam Taneja Uppal unlawfully wrote opioid prescriptions in the names of individuals depicted in photographs of driver’s licenses she received via text messages from a third party in exchange for payment for the prescriptions.
The complaint alleges that Dr. Uppal never met the individuals for whom she wrote prescriptions, and that she sold the prescriptions to a third party. The complaint further alleges that Dr. Uppal received thousands of dollars in cash on multiple occasions for a variety of opioid prescriptions. The complaint seeks to permanently bar Dr. Uppal from issuing controlled substances prescriptions, or owning or supervising a pain clinic, and it also seeks civil penalties.
“It is unlawful for a physician to write opioid prescriptions for individuals they have never met and then sell those prescriptions to a third party,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Department of Justice will use every enforcement tool available under the Controlled Substances Act to protect our communities from rogue medical professionals.”
“The illegal distribution and use of opioids have led to a nationwide epidemic,” said U.S. Attorney Roger B. Handberg for the Middle District of Florida. “Physicians who prescribe these dangerous drugs without legitimate medical cause violate not only the law, but also their oath to do no harm.”
“At a time when we need to be doing all that we can to prevent drug misuse and overdoses, DEA will not tolerate doctors who knowingly break the law, jeopardizing the safety and health of our communities by recklessly prescribing controlled substances,“ said DEA Miami Field Division Special Agent in Charge Deanne L. Reuter. “DEA will continue working with our law-enforcement partners to pursue cases against anyone contributing to the deadly overdose epidemic in this country.”
U.S. District Judge Thomas Barber granted the temporary restraining order in the U.S. District Court for the Middle District of Florida.
DEA’s Tactical Diversion Squad in the Tampa District Office is conducting the ongoing investigation. Assistant U.S. Attorney Lindsay S. Griffin and Trial Attorneys Thomas S. Rosso and Scott B. Dahlquist of the Justice Department’s Consumer Protection Branch are handling the case.
The claims made in the complaint are merely allegations that the United States must prove if the case proceeds to trial.
Justice Department Obtains Temporary Restraining Order to Prevent Tampa-Area Physician from Writing Opioid PrescriptionsRead the Press Release
Tampa, FL – A federal court issued a temporary restraining order prohibiting a Tampa-area physician from prescribing opioids and other controlled substances, the Department of Justice announced today.
In a complaint filed on July 18, and unsealed yesterday, the United States alleges that Dr. Neelam Taneja Uppal unlawfully wrote opioid prescriptions in the names of individuals depicted in photographs of driver’s licenses she received via text messages from a third party in exchange for payment for the prescriptions.
The complaint alleges that Dr. Uppal never met the individuals for whom she wrote prescriptions, and that she sold the prescriptions to a third party. The complaint further alleges that Dr. Uppal received thousands of dollars in cash on multiple occasions for a variety of opioid prescriptions. The complaint seeks to permanently bar Dr. Uppal from issuing controlled substances prescriptions, or owning or supervising a pain clinic, and it also seeks civil penalties.
“It is unlawful for a physician to write opioid prescriptions for individuals they have never met and then sell those prescriptions to a third party,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Department of Justice will use every enforcement tool available under the Controlled Substances Act to protect our communities from rogue medical professionals.”
“The illegal distribution and use of opioids have led to a nationwide epidemic,” said U.S. Attorney Roger B. Handberg for the Middle District of Florida. “Physicians who prescribe these dangerous drugs without legitimate medical cause violate not only the law, but also their oath to do no harm.”
“At a time when we need to be doing all that we can to prevent drug misuse and overdoses, DEA will not tolerate doctors who knowingly break the law, jeopardizing the safety and health of our communities by recklessly prescribing controlled substances,” said DEA Miami Field Division Special Agent in Charge Deanne L. Reuter. “DEA will continue working with our law-enforcement partners to pursue cases against anyone contributing to the deadly overdose epidemic in this country.”
U.S. District Judge Thomas Barber granted the temporary restraining order in the U.S. District Court for the Middle District of Florida.
DEA’s Tactical Diversion Squad in the Tampa District Office is conducting the ongoing investigation. Assistant U.S. Attorney Lindsay S. Griffin and Trial Attorneys Thomas S. Rosso and Scott B. Dahlquist of the Justice Department’s Consumer Protection Branch are handling the case.
The claims made in the complaint are merely allegations that the United States must prove if the case proceeds to trial.
Jackson Man Sentenced to Serve 78 Months in Federal Prison for Possessing Child PornographyRead the Press Release
CAPE GIRARDEAU - The United States Attorney's Office announced that Travis J. Anderson, age 49, of Jackson, Missouri, has been sentenced to serve 78 months in federal prison for the offense of Possession of Child Pornography. Anderson appeared for his sentencing hearing today before United States District Judge Stephen N. Limbaugh, Jr. at the federal courthouse in Cape Girardeau, Missouri.
According to court documents, law enforcement officials executed a federal search warrant at Anderson’s residence in March 2021. Numerous items were seized, including Anderson’s mobile phone and several computer hard drives. Investigators subsequently discovered a large volume of child pornography on the devices. At his guilty plea hearing last February, Anderson admitted that he downloaded the material over the internet. After serving his 78-month sentence, Anderson was ordered to be placed on supervised release for 20 years. He will also be required to register as a sex offender.
This case was investigated by the Federal Bureau of Investigation and the St. Charles County Cyber Crimes Task Force. Assistant United States Attorney Jack Koester handled the prosecution for the Government.
Indianapolis Men Sentenced to Federal Prison for Possession of Destructive Device Used in Bridge Explosion Outside Indianapolis Motor SpeedwayRead the Press Release
INDIANAPOLIS – Wayne Turner, 58, of Indianapolis, was sentenced to 46 months in federal prison after pleading guilty to possession of an unregistered destructive device. Codefendant Isak Turner pleaded guilty to the same charge and was sentenced to 42 months in prison on February 16, 2022.
According to court documents, on December 20, 2019, Wayne, Isak and H.B., were at Wayne’s Indianapolis apartment near East Washington Street. Wayne assembled an improvised explosive device using various materials he kept at his apartment. Isak placed the explosive device in his backpack and the group traveled in H.B.’s car to Speedway, Indiana. They parked the car by the railroad tracks near the 1200 block of Olin Avenue, just south of the Indianapolis Motor Speedway. The group then walked to the railroad bridge over 16th Street towards the Speedway.
After they reached the bridge, Isak removed the device from the backpack asking H.B. to light it, but she refused. Instead, Isak ignited the device and threw it off the bridge. The device landed on the median of 16th Street and exploded. The destructive device caused a blast crater and visible damage to the railroad bridge and a bridge light fixture. The explosion and debris also damaged a vehicle passing under the bridge at the time, but the driver was unharmed.
Speedway Police Department officers responding to a report of an explosion observed Wayne, Isak, and H.B. walking on the bridge. Officers interviewed the group and executed a search warrant at Wayne’s apartment off East Washington Street. Investigators located materials used to make explosives inside Wayne’s apartment located in an occupied multi-unit building. Wayne and Isak were arrested. H.B. was not charged.
The device assembled by Wayne and ignited and thrown off the 16th Street bridge by Isak, is defined in the National Firearms Act as a destructive device. It was not registered to Wayne or Isak in the National Firearms Registration and Transfer Record, as required by law.
Wayne was arrested and convicted in August 2016 of criminal recklessness in Marion County for similar conduct. On May 28, 2016, the night before the Indianapolis 500 race, Wayne detonated and threw an “M-80” style device over a fence onto Indianapolis Motor Speedway property sending people fleeing in panic. Wayne set off a second explosive device, next to a barricade on Georgetown Road, again causing panic and flight among pedestrians at the scene. At the time of the 2016 arrest, officers found Wayne, apparently intoxicated, and in possession of at least eight cylindrical explosive devices with ignitable wicks.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana; Daryl S. McCormick, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Columbus Field Division; Chief Randal Taylor of the Indianapolis Metropolitan Police Department (IMPD); and Chief Charles Upchurch of the Speedway Police Department made the announcement.
ATF, IMPD and Speedway Police Department investigated the case. The sentence was imposed by U.S. District Judge James Patrick Hanlon. As part of the sentence, Judge Hanlon ordered that Wayne and Isak Turner each be supervised by the U.S. Probation Office for three years following their release from federal prison.
U.S. Attorney Myers thanked Assistant U.S. Attorney William McCoskey who prosecuted this case.
Indianapolis Man Sentenced to 17 Years in Prison for Carjacking and Shooting a Man While on Pretrial Release for Attempted CarjackingRead the Press Release
INDIANAPOLIS – Derrick Hart, 22, of Indianapolis, was sentenced to 17 years in federal prison after pleading guilty to carjacking, discharge of a firearm during and in relation to a crime of violence, and commission of federal felony while on pretrial release.
According to court documents, on December 13, 2018, Hart walked up to J.S., who was sitting in his vehicle, parked at the 4200 block of North Franklin Road, in Lawrence, Indiana. Hart pointed a Taurus G2C 9mm handgun at J.S., took J.S.’s cell phone, and demanded money. J.S. told Hart he had no cash, only credit cards. Hart then demanded J.S.’s car keys and J.S. complied. Hart got in the passenger seat of the vehicle, and ordered J.S. at gunpoint, to drive to the Chase Bank ATM across the street.
J.S. saw a Brinks armored truck at the bank and attempted to get the driver’s attention by revving his car engine. The Brinks truck was servicing the ATM, so Hart ordered J.S. to drive to a different ATM, at 42nd Street. J.S. attempted to grab Hart’s handgun and in the process crashed his car into a fence on the edge of the bank. Hart got out of the vehicle, ran around the back of the car, and fired at J.S. striking him in the arm. J.S. returned fire with his own handgun, striking Hart, as he ran away toward an apartment complex, west of the Chase bank.
Responding officers found Hart nearby with a gunshot wound. Hart was carrying a spare magazine loaded with 12 rounds of ammunition, several loose 9mm rounds, and a small quantity of marijuana on his person. Hart admitted to leaving the handgun near an apartment building, which police later located under a bush. The handgun was loaded, held a magazine loaded with 9mm cartridges, and had blood on its grip. The blood found on the handgun was linked to Hart through DNA analysis.
Hart committed the December 13, 2018, carjacking and shooting while he was on federal pretrial release for similar conduct. On September 26, 2018, Hart was charged by federal criminal complaint with attempted carjacking, brandishing a firearm in furtherance of a crime of violence, and possession of a firearm within 1,000 feet of a school zone. Before Hart was released from detention, he signed paperwork acknowledging that if he commits a federal felony offense while on pretrial release, he may be punished by up to ten years additional in prison. Hart signed the paperwork and was released. By December of 2018, Hart cut off his ankle monitor and absconded from pretrial release.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana; R. Sean Fitzgerald, acting Special Agent in Charge of the Chicago Field Office for Homeland Security Investigations (HSI); Daryl S. McCormick, Special Agent in Charge of the Columbus Field Office for Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); and Chief Gary Woodruff of the Lawrence Police Department made the announcement.
HSI, ATF and the Lawrence Police Department investigated the case. The sentence was imposed by U.S. District Judge James Patrick Hanlon. As part of the sentence, Judge Hanlon ordered that Hart be supervised by the U.S. Probation Office for five years following his release from federal prison.
U.S. Attorney Myers thanked Assistant U.S. Attorneys William L. McCoskey and Patrick G. Gibson who prosecuted this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement, and the local community to develop effective, locally based strategies to reduce violent crime.
Honolulu Man Receives Ten Years in Prison and 25 Years Supervision for Possession of Child PornographyRead the Press Release
HONOLULU – United States District Judge Leslie E. Kobayashi yesterday sentenced Aaron Anthony Hood, 45, of Honolulu, Hawaii, to ten years of imprisonment and 25 years of supervised release for one count of possession of child pornography. Hood previously pleaded guilty to the child pornography offense on September 17, 2019.
In his plea agreement, Hood admitted that from on or about January 23, 2016, to January 27, 2016, he knowingly possessed at least one video of child pornography. The video was approximately 19 minutes long and depicted a 14-year-old female engaged in sexually explicit conduct with Hood. The video was produced using a cellphone. During Hood’s contacts with the 14-year-old minor he also supplied her with drugs and alcohol.
“Hood’s crimes threatened the overall safety of our community,” said U.S. Attorney Clare E. Connors. “Sexually exploitive crimes targeting children carry significant prison penalties and will be vigorously prosecuted by our office.”
“Homeland Security Investigations (HSI) is committed to protecting our community from predators,” said John F. Tobon, HSI Special Agent in Charge. “We will continue to identify and prosecute those responsible for committing these heinous offenses.”
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Homeland Security Investigations conducted the investigation that resulted in the indictment. Assistant U.S. Attorneys Margaret C. Nammar and Rebecca A. Perlmutter are prosecuting the case.
Harlan County Man Sentenced to 33 Months for Fraudulently Obtaining COVID Relief LoansRead the Press Release
LONDON, Ky. – A Harlan, Ky., man, David Christopher Lewis, 49, was sentenced to 33 months in federal prison on Thursday, by U.S. District Judge Robert E. Wier, after pleading guilty to wire fraud, for obtaining Paycheck Protection Program loans under false pretenses.
According to his plea agreement, in May 2020, Lewis submitted two fraudulent applications for Paycheck Protection Program (PPP) loans on behalf of Bubba Fest, LLC and Elite Artists Agency, LLC. Both businesses related to a “comic con”-style event called Bubba Fest that Lewis had organized in prior years. The Paycheck Protection Program was created as part of the CARES Act, a law passed in March 2020 in response to the COVID-19 pandemic. Paycheck Protection Program loans were designed to provide an incentive for small businesses to keep workers on their payroll during the pandemic; these loans would be forgiven by the United States Small Business Administration, if the borrower established that loan proceeds were used for payroll, rent, or other approved business expenses. The amount of the loan was dependent on the business’s payroll.
As part of his fraudulent PPP loan applications, Lewis provided the bank, First State Bank of the Southeast, with fake tax documents and payroll records misrepresenting the businesses’ number of employees and payroll expenses. As a result, he obtained fraudulent a PPP loan for each business totaling $370,000. Evidence admitted at Lewis’s sentencing hearing established that between May 26 and August 28, 2020, Lewis paid himself or his wife more than $100,000 of the PPP loan money. In his plea agreement, Lewis also admitted to obstructing the FBI’s investigation of his crime by providing a sworn affidavit that lied about the existence and whereabouts of the businesses’ employment and payroll records.
Under federal law, Lewis must serve at least 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for three years. In addition to the term of imprisonment, Lewis was ordered to pay $370,000 in restitution to First State Bank of the Southeast.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky, and Jodi Cohen, Special Agent in Charge, Federal Bureau of Investigation, Louisville Field Office jointly announced the sentence. The investigation was conducted by the FBI. The United States was represented by Assistant U.S. Attorney Paul McCaffrey.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Greenview Man Sentenced to Almost 27 Years in Prison for Possession with Intent to Distribute Methamphetamine and Possessing a Firearm with Drug TraffickingRead the Press Release
PEORIA, Ill. – A Greenview, Illinois man, Jonathan Puddy, 38, of the 400 block of West Douglas Street, was sentenced on July 27, 2022, to 262 months imprisonment for possession with intent to distribute 50 grams or more of methamphetamine, and 60 months, to be served consecutively to the first charge, for possessing a firearm in furtherance of drug trafficking. The total prison sentence of 322 months is to be followed by 10 years of supervised release.
At the sentencing hearing before U.S. District Court Judge Joe B. McDade, the government presented evidence that on October 24, 2020 around 1:00 am, Peoria County Sheriff’s deputies stopped a car Puddy was driving. Puddy got out of the car and ran from officers. He jumped a fence and struggled with officers attempting to arrest him. After the officers handcuffed Puddy, they searched him and found a loaded Colt .25 caliber handgun and $1,200 in his pants pockets. In his bag, the deputies found about 274 grams of methamphetamine, about 15 grams of heroin, and about 28 grams of powder cocaine. Puddy admitted to trafficking pounds of ice methamphetamine over the previous month.
Puddy was indicted in November 2020 and has remained in the custody of the U.S. Marshals Service since his arraignment in April 2021. Puddy entered a plea of guilty in December 2021.
The statutory penalties for possession with intent to distribute 50 grams or more of methamphetamine are a minimum of 10 years, with a mandatory minimum of 15 years with one qualifying conviction, a maximum $20 million fine, and not less than 5 years supervised release. The penalties for possessing a firearm in furtherance of drug trafficking are not less than 5 years imprisonment, consecutive to the first charge, a maximum $250,000 fine and not more than 5 years supervised release.
The Peoria County Sheriff’s Department, the United States Drug Enforcement Administration, and the Pekin Police Department investigated the case. Assistant U.S. Attorney Keith Hollingshead-Cook represented the government in the prosecution.
The case against Puddy was brought as part of the Department of Justice’s Project Safe Neighborhoods initiative. The Department’s renewed commitment to Project Safe Neighborhoods establishes four fundamental principles to guide efforts to reduce violent crime: 1) build trust and legitimacy within communities; 2) invest in community-based prevention and intervention programs; 3) target enforcement and priorities to focus resources on identifying, investigating, and prosecuting the most significant drivers of gun violence and other violent crime; and, 4) measure results with the goal to reduce the level of violence in our communities and not to increase the number of arrests and prosecutions as if they were ends in themselves.
Georgia Man is Sentenced to Prison for Defrauding Medicaid Programs in Three StatesRead the Press Release
CHARLOTTE, N.C. – A Georgia man was sentenced to prison for participating in a scheme that defrauded the Medicaid programs in North Carolina, South Carolina and Georgia of more than $5 million, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Kenneth D. Bell sentenced Glenn Pair, 36, of Stonecrest, Georgia to 70 months in prison and two years of supervised release and ordered the defendant to pay a total of $5,078,444 as restitution.
U.S. Attorney King is joined in making today’s announcement by Adair Ford Boroughs, U.S. Attorney for the District of South Carolina, Ryan K. Buchanan, U.S. Attorney for the Northern District of Georgia, North Carolina Attorney General Josh Stein, Robert R. Wells, Special Agent in Charge of the FBI in North Carolina, and Donald “Trey” Eakins, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division, Charlotte Field Office (IRS-CI).
The criminal charges filed against Pair in federal court in the Northern District of Georgia and South Carolina were transferred to the U.S. District Court for the Western District of North Carolina in September and October 2021, respectively. In October 2021, Pair pleaded guilty to conspiracy to commit Medicaid fraud in connection with the three federal prosecutions. Pair also pleaded guilty to a money laundering conspiracy offense in the Western District of North Carolina. Today’s sentence resolves all three federal criminal actions against the defendant.
According to filed court documents and today’s sentencing hearing, Pair and his co-conspirator, Markuetric Stringfellow, owned and operated an after-school and youth mentoring program known as Do-It-4-The Hood Corporation (D4H). From January 2016 through November 2018, Pair and Stringfellow paid individuals to recruit at-risk youths, in particular children who were Medicaid eligible in North Carolina, for their D4H program. Once enrolled, children were required to submit urine specimens for drug testing. Pair and Stringfellow conspired with certain laboratories to perform the drug testing of the enrolled children’s urine specimens and received kickbacks once the laboratories were reimbursed by the North Carolina Medicaid. In 2017, Pair moved to Georgia, and he and Stringfellow expanded the fraudulent scheme to defraud the state’s Medicaid program.
The South Carolina scheme involved Wrights Care Services LLC (Wrights Care), a qualified provider of Medicaid rehabilitative behavioral health services in South Carolina. Pair and Stringfellow became owners of a Wrights Care franchise in Columbia, South Carolina. Starting in or around 2014, Pair and Stringfellow defrauded the South Carolina Medicaid program by filing fraudulent claims for mental health counseling or other services that were either not provided, partially provided, or did not qualify for Medicaid reimbursement. Pair and Stringfellow submitted falsified patient billing records and fake medical notes to support the fraudulent reimbursement claims filed. After learning there was a Medicaid audit for Wrights Care, Stringfellow attempted to deceive South Carolina Medicaid auditors. In or about March 2015, Stringfellow met other associates of Wrights Care in Columbia for a “note party.” During this gathering and in Pair’s presence, the co-conspirators created false and fraudulent billing records to substantiate previously-submitted fraudulent Medicaid claims, forged signatures, and falsified records subject to the audit, which they then submitted to South Carolina Medicaid auditors in response to the audit.
Over the course of the scheme, Pair, Stringfellow and their co-conspirators submitted thousands of fraudulent claims to Medicaid of the three states totaling over $17 million and received over $5 million in fraudulent reimbursements. In addition, they received $1.8 million in kickbacks from the laboratories that participated in the conspiracy.
Pair is currently released on bond. He will be ordered to report to the federal Bureau of Prisons upon designation of a federal facility. Stringfellow was sentenced in February 2021 to 78 months in prison and was ordered pay $5,278,550 in restitution for his role in the scheme.
In making today’s announcement U.S. Attorney King thanked the U.S. Attorneys’ Offices in South Carolina and the Northern District of Georgia, the FBI in North Carolina, South Carolina and Georgia, and the Medicaid Investigations Division in the three states for their investigative efforts and coordination throughout case.
Assistant U.S. Attorneys Michael E. Savage and Graham Billings of the U.S. Attorney’s Office in Charlotte, prosecuted the case, assisted by Special Assistant U.S. Attorney Jermaine Sellers with the Medicaid Fraud Investigation Division of the N.C.
Also assisting in the prosecution of this case was Assistant United States Attorney Brook B. Andrews from the Columbia, South Carolina office.
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Former White House Advisor Sentenced to One Year and One Day in Prison for Devising A Scheme to Steal from Charter Schools He FoundedRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that SETH ANDREW was sentenced to 366 days in prison in connection with his execution of a scheme to defraud Democracy Prep Public Schools (“DPPS”), a charter school network that he founded, of more than $218,000. United States District Judge John P. Cronan imposed today’s sentence.
U.S. Attorney Damian Williams said: “Seth Andrew was sentenced today for stealing from those who once trusted him. Andrew committed this crime to attempt to punish non-profit charter schools because they declined his offer to return as their leader. Thankfully, the victim of Andrew’s crime was resilient, and its important work continues. Today’s sentence sends a message that those who engage in fraud schemes and steal from others will face appropriate consequences for their conduct.”
According to previous filings in this case:
In 2005, SETH ANDREW helped to found Democracy Prep Public Schools, a series of public charter schools then based in New York City. In the Spring of 2013, ANDREW left DPPS and accepted a job in the United States Department of Education and, thereafter, as a senior advisor in the Office of Educational Technology at the White House. In November 2016, ANDREW left his role at the White House. Shortly thereafter, in January 2017, ANDREW officially severed his relationship with DPPS.
Under New York state regulations, DPPS’s New York-based charter schools must maintain an “escrow account” that may be accessed only if the school dissolves. Three such escrow accounts, for three New York City-based-DPPS schools, were opened by ANDREW and other DPPS employees, at a bank (“Bank-1”) in 2009, 2011 and 2013, respectively (“Escrow Account-1,” “Escrow Account-2,” and “Escrow Account-3”, collectively, the “Escrow Accounts”). ANDREW was a signatory and had access to the funds in the Escrow Accounts. However, pursuant to the charter agreement, the funds in the Escrow Accounts were reserved in case the schools dissolved, and the funds could not be moved by ANDREW, or anyone, without proper authorization.
In early 2019, apparently frustrated with decisions made by DPPS, and his inability to exercise control over the organization, ANDREW sought to rejoin DPPS. On March 10, 2019, ANDREW sent an email to several members of DPPS, including its Chairman, offering to return as “President,” in exchange for “$25k/month as [a] salaried employee and basic frugal expenses,” plus a $250,000 bonus if he met deliverables ANDREW outlined. ANDREW further stated that “every single day that goes by, this situation becomes exponentially more difficult and the ability to pull out of a nosedive becomes harder. So after 24 hours, my monthly salary expectation will go up every day that we’re not under a signed contract.”
DPPS declined ANDREW’s offer. Eighteen days later, on March 28, 2019, ANDREW entered a Bank-1 branch in New York City and closed both Escrow Account-1 and Escrow Account-2. Bank-1 provided ANDREW a bank check in the amount of $71,881.23 made payable to “Democracy Prep Charter School” (“Check-1”) and a second bank check in the amount of $70,642.98 made payable to “Democracy Prep Harlem Charter” (“Check-2”).
The same day that ANDREW closed Escrow Account-1 and Escrow Account-2, ANDREW entered a Manhattan branch of a different FDIC-insured bank (“Bank-2”) and opened a business bank account in the name of “Democracy Prep Charter School” (“Fraud Account‑1”). To open that account, ANDREW misrepresented to a Bank-2 employee that he was a “Key Executive with Control of” DPPS and supported that misrepresentation by sending emails sent to the Bank-2 employee from a DPPS email account. ANDREW then deposited Check-1 into Fraud Account-1. Five days later, on April 2, 2019, ANDREW used an ATM machine in Baltimore, Maryland to deposit Check-2 into Fraud Account‑1.
On October 17, 2019, ANDREW closed out Escrow Account-3 and received a check (“Check-3”) made payable to “Democracy Prep Endurance” in the amount of $75,481.10. On October 21, 2019, ANDREW deposited Check-3 into an account that he opened at a third bank (“Fraud Account-2”).
Approximately one month later, ANDREW obtained a check from Bank-2 for $144,473.29, which constituted the funds stolen from Escrow Account-1 and Escrow Account-2. ANDREW ultimately deposited those funds into Fraud Account-2, combing all of the stolen funds, then worth approximately $219,954. Five days later, ANDREW rolled the stolen funds in Fraud Account-2 into a certificate of deposit. That certificate of deposit matured on May 20, 2020, which earned ANDREW $2,083.52 in interest. ANDREW then transferred the funds from the certificate of deposit -- including the funds stolen from the Escrow Accounts -- into a bank account held in the name of Democracy Builders, another nonprofit that ANDREW then-controlled, thereby concealing the money’s association with DPPS, and depositing the stolen money into an account under ANDREW’s complete control. The next day, ANDREW sent a wire for $225,000, apparently comprised primarily of funds from the Escrow Accounts, for a down payment on a significant purchase of property for Democracy Builders.
In total, DPPS lost $218,005 as a result of Andrew’s actions.
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ANDREW, 43, previously pled guilty to one count of wire fraud on January 14, 2022, before Judge Cronan. In addition to this prison sentence, ANDREW was sentenced to 3 years of supervised release. Prior to today’s sentencing Andrew paid $218,005 in restitution to DPPS, and $22,537 in forfeiture.
Mr. Williams praised the outstanding investigative work of the FBI.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Ryan B. Finkel is in charge of the prosecution.
Former US Air Force Member Sentenced to 15 years for Production of Child PornographyRead the Press Release
CHARLESTON, SOUTH CAROLINA — Bryce Carter Studebaker, 25, of Moncks Corner, was sentenced to 15 years in federal prison for production of child pornography.
Evidence presented to the Court showed that on March 30, 2018, Studebaker, then an Airman in the U.S. Air Force and stationed at Beale Air Force Base in California, communicated on Facebook Messenger with a 14-year-old minor who lived in Tennessee. During the messaging, Studebaker persuaded the minor to produce videos and images of herself engaging in sexually explicit conduct, and to send the videos and images to Studebaker. Authorities discovered the conduct after responding to a call from the minor’s mother who said her daughter had been communicating with an online predator.
United States District Judge Bruce Howe Hendricks sentenced Studebaker to 180 months in federal prison, to be followed by a lifetime term of court-ordered supervision. There is no parole in the federal system.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the U.S. Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
The case was investigated by the U.S. Air Force Office of Special Investigations (OIS). Assistant U.S. Attorney Dean H. Secor prosecuted the case.
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Former Newport Man Sentenced for Possessing Child PornographyRead the Press Release
PROVIDENCE – A 41-year-old man who accessed and uploaded child pornography while boarding in a Newport residence has been sentenced to forty-two months in federal prison, announced United States Attorney Zachary A. Cunha.
In May 2020, Homeland Security Investigations (HSI) was notified by a social media platform that a user utilizing the online platform had uploaded child pornography. A court-authorized search of the user’s account revealed eleven images of child pornography and thirteen child pornography videos. Agents traced the IP address associated with the account to a Newport residence.
On October 27, 2020, agents executed a court-authorized search of the residence and arrested Craig M. Mulvey, 41, after locating images and videos of child pornography on his laptop computer. He was residing in a bedroom of the residence in exchange for performing odd jobs for the residence’s owner and occupant.
Mulvey pleaded guilty on August 6, 2021, to possession of child pornography.
On October 23, 2021, Mulvey was arrested by Providence Police on a Rhode Island state charge of domestic violence – simple assault and/or battery 3rd+ offense. At a bond revocation hearing two days later in U.S. District Court, Mulvey consented to detention in federal custody.
Mulvey was sentenced on Wednesday by U.S. District Court Judge William E. Smith to forty-two months of incarceration to be followed by eight years of federal supervised release.
The case was prosecuted by Assistant U.S. Attorneys John P. McAdams and Milind M. Shah.
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Former Customs and Border Protection Officer Charged with Kidnapping a MinorRead the Press Release
Authorities arrested former U.S. Customs and Border Protection Officer Aaron Mitchell, 27, of Miami Gardens, Florida, who was charged with kidnapping a minor, announced Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division, U.S. Attorney Gary M. Restaino for the District of Arizona and Acting Special Agent in Charge Chris Ormerod for the FBI Phoenix Field Division.
A federal grand jury in the District of Arizona returned the indictment charging Mitchell with a single count of kidnapping. According to the indictment, on April 25, in Arizona, Mitchell kidnapped and then held the victim, who was under the age of 18 at the time of the alleged offense. In the commission and in furtherance of the offense, Mitchell transported the victim in interstate and foreign commerce and the defendant traveled in interstate commerce and used a means, facility and instrumentality of interstate commerce.
If convicted, Mitchell faces a maximum of life imprisonment, a minimum of 20 years imprisonment, a minimum of five years and up to lifetime of supervised release and a $250,000 fine.
This case is being investigated by the FBI Sierra Vista resident agency. Assistant U.S. Attorney Carin Duryee for the District of Arizona and Trial Attorney Angie Cha of the Justice Department’s Civil Rights Division are prosecuting the case.
If you have information related to this matter, please call the FBI Phoenix, 623-466-1999 or submit a tip online at tips.fbi.gov.
An indictment is merely an allegation. The defendant is presumed innocent until proven guilty in a court of law.
Former BOP Correctional Officer Charged with COVID-Relief FraudRead the Press Release
Jackson, Miss. – A Flora woman was arrested Monday after being indicted by a federal grand jury on criminal charges related to her alleged fraud scheme involving federal COVID-19 Paycheck Protection Program loans, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge James F. Boyersmith of the Department of Justice Office of the Inspector General, Miami Field Office.
According to court documents, Tarshuana Thomas, 34, devised a scheme to obtain PPP funds by filing fraudulent loan applications with entities providing loans as part of the Paycheck Protection Program, including Fountainhead SPF and Capital Plus Financial. Thomas was employed as a Correctional Officer with the Federal Bureau of Prisons, Federal Correctional Complex (FCC) Yazoo City at the time of the alleged conduct.
Thomas is charged with two counts of wire fraud. The case is set for trial on September 12, 2022. If convicted, Thomas faces a maximum penalty of 20 years in prison on each count.
The Department of Justice, Office of the Inspector General is investigating the case.
Assistant U.S. Attorney Kimberly Purdie is prosecuting the case.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Felon Who Fled Police Sentenced for Possessing a Firearm, Ammunition and Stolen VehiclesRead the Press Release
A Tulsa man was sentenced Thursday in federal court to more than nine years in prison after being found with a firearm, ammunition and two stolen vehicles, announced U.S. Attorney Clint Johnson.
Chief U.S. District Judge John F. Heil III sentenced Corey Keith Gregory Jr., 43, to 115 months in federal prison followed by three years of supervised release.
“All too often felons who illegally possess firearms continue their criminal behavior and threaten public safety,” said U.S. Attorney Clint Johnson. “My office and our law enforcement partners will continue to work side by side to hold individuals like Corey Gregory accountable for the harm they cause to communities across Oklahoma.”
Gregory pleaded guilty on Jan. 12, 2022, to felon in possession of a firearm and ammunition, two counts of receipt of stolen property in Indian Country, and felon in possession of ammunition.
According to court documents, on February 14, 2020, Gregory was driving a stolen Chevrolet Silverado when Tulsa police officers pulled him over. Gregory was found to have ammunition in his pocket and a Ruger .357 revolver inside the stolen truck. Additionally, on April 29, 2020, Gregory was driving a stolen Chevrolet Tahoe when officers attempted to pull him over. Gregory fled from officers and crashed the Tahoe. When officers searched the vehicle, they located a loaded magazine.
Federal law prohibits Gregory from possessing firearms and ammunition because he is a felon and has been convicted of a misdemeanor crime of domestic violence.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and Tulsa Police Department conducted the investigation. Assistant U.S. Attorneys Christopher J. Nassar and Jessica L. Wright prosecuted the case.
Federal Indictment Charges Man with Illegally Possessing Machine Guns in ChicagoRead the Press Release
CHICAGO — A man has been indicted on federal firearm charges for allegedly illegally possessing machine guns in Chicago this year.
JUAN INFANTE, 28, of Chicago, is charged with illegal possession of machine guns and illegal possession of firearms as a convicted felon. Infante had previously been convicted of a felony theft offense and was prohibited by federal law from possessing firearms.
The indictment accuses Infante of illegally possessing four handguns, two of which were equipped with conversion devices known as “Glock switches.” The devices transformed the firearms into machine guns capable of automatically firing more than one shot with a single pull of the trigger. Infante earlier this year sold two of the guns to an individual who was surreptitiously cooperating with law enforcement, according to a federal criminal complaint previously filed in the case.
The indictment was returned Wednesday in U.S. District Court in Chicago. A date for arraignment has not yet been scheduled. Infante is currently detained in federal custody without bond after the U.S. Attorney’s Office filed a motion for pretrial detention on the basis that Infante posed a danger to the community.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The government is represented by Assistant U.S. Attorney Beth E. Palmer.
Disrupting illegal firearms trafficking is the focus of the Department of Justice’s cross-jurisdictional strike force. As part of the Chicago firearms trafficking strike force, the U.S. Attorney’s Office collaborates with the FBI and other federal, state, and local law enforcement partners in the Northern District of Illinois and across the country to help stem the supply of illegally trafficked firearms and identify patterns, leads, and potential suspects in violent gun crimes.
Holding illegal firearm possessors accountable through federal prosecution is also a centerpiece of Project Safe Neighborhoods, the Department of Justice’s violent crime reduction strategy. In the Northern District of Illinois, U.S. Attorney Lausch and law enforcement partners have deployed the PSN program to attack a broad range of violent crime issues facing the district, particularly firearm offenses.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Each count in the indictment is punishable by up to ten years in federal prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Federal Indictment Charges Man with Illegally Possessing Machine Guns in ChicagoRead the Press Release
CHICAGO — A man has been indicted on federal firearm charges for allegedly illegally possessing machine guns in Chicago this year.
JUAN INFANTE, 28, of Chicago, is charged with illegal possession of machine guns and illegal possession of firearms as a convicted felon. Infante had previously been convicted of a felony theft offense and was prohibited by federal law from possessing firearms.
The indictment accuses Infante of illegally possessing four handguns, two of which were equipped with conversion devices known as “Glock switches.” The devices transformed the firearms into machine guns capable of automatically firing more than one shot with a single pull of the trigger. Infante earlier this year sold two of the guns to an individual who was surreptitiously cooperating with law enforcement, according to a federal criminal complaint previously filed in the case.
The indictment was returned Wednesday in U.S. District Court in Chicago. A date for arraignment has not yet been scheduled. Infante is currently detained in federal custody without bond after the U.S. Attorney’s Office filed a motion for pretrial detention on the basis that Infante posed a danger to the community.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The government is represented by Assistant U.S. Attorney Beth E. Palmer.
Disrupting illegal firearms trafficking is the focus of the Department of Justice’s cross-jurisdictional strike force. As part of the Chicago firearms trafficking strike force, the U.S. Attorney’s Office collaborates with the FBI and other federal, state, and local law enforcement partners in the Northern District of Illinois and across the country to help stem the supply of illegally trafficked firearms and identify patterns, leads, and potential suspects in violent gun crimes.
Holding illegal firearm possessors accountable through federal prosecution is also a centerpiece of Project Safe Neighborhoods, the Department of Justice’s violent crime reduction strategy. In the Northern District of Illinois, U.S. Attorney Lausch and law enforcement partners have deployed the PSN program to attack a broad range of violent crime issues facing the district, particularly firearm offenses.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Each count in the indictment is punishable by up to ten years in federal prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Eustis Woman Sentenced to Federal Prison for Selling MethamphetamineRead the Press Release
Tampa, Florida – U.S. District Judge Mary S. Scriven has sentenced Rhiannon Peacock (39, Eustis) to three years and five months in federal prison for conspiracy to distribute methamphetamine. Peacock had pleaded guilty on November 16, 2021.
According to facts presented in court, Peacock conspired with others to distribute methamphetamine in the Eustis and St. Petersburg areas within the Middle District of Florida.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Craig Gestring.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Duval Convicted Felon Pleads Guilty to Illegally Possessing FirearmRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces that Raymond Samuel Reeves (22, Jacksonville) has pleaded guilty to possessing a firearm as a convicted felon. Reeves faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been scheduled. As part of the plea agreement, Reeves has agreed to forfeit the firearm traceable to the offense.
According to the plea agreement, on February 16, 2022, Reeves was arrested by officers from the Jacksonville Sheriff’s after driving recklessly through residential and commercial streets in the Pearl Street area north of downtown. At the time of his arrest, Reeves had a 9mm Taurus pistol in his possession. Reeves had previously been convicted of carjacking and therefore is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jacksonville Sheriff’s Office. It is being prosecuted by Special Assistant United States Attorney Cyrus P. Zomorodian.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Duval Convicted Felon Pleads Guilty for Attempting to Purchase FirearmRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces that Dontae Deshawn Edwards (31, Jacksonville) has pleaded guilty to knowingly making a false statement to a federally licensed firearms dealer. Edwards faces a maximum penalty of five years in federal prison. A sentencing date has not yet been scheduled.
According to the plea agreement, on October 20, 2021, Edwards knowingly made a false statement to a federally licensed firearms dealer on the ATF Form 4473. Edwards stated that he was not a convicted felon when, in fact, he had previously been convicted of several felonies, including possession of a firearm by a convicted felon, carrying a concealed firearm, possession of more than 20 grams of cannabis and driving while license suspended or revoked – felony habitual offender (four counts).
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Special Assistant United States Attorney Cyrus P. Zomorodian.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Duluth Man Sentenced to 8.5 Years in Prison for Covid Relief Fraud and Identity TheftRead the Press Release
MINNEAPOLIS – A Duluth man was sentenced to 102 months in prison, three years of supervised release, and $284,355.54 in restitution for wire fraud and aggravated identity theft, announced United States Attorney Andrew M. Luger.
According to court documents, between April 2020 and August 2020, Jared John Fiege, 35, devised and executed a scheme to fraudulently obtain funds through Minnesota’s Unemployment Insurance (UI) program and the SBA’s Economic Injury Disaster Loan (EIDL) Program. As part of the scheme, Fiege submitted fraudulent applications for UI benefits and EIDL assistance by using stolen names, birth dates, and social security numbers of at least 25 individuals. In applying for EIDL assistance and advances, Fiege also invented fictional business entities, which he linked to the identities of real persons without their knowledge or consent. As part of the scheme, Fiege possessed multiple burner cell phones and registered numerous email addresses which he used to impersonate others. Fiege was also found in possession of photoshopped passports, utility bills, and other documents he used for identity verification for the programs he targeted. In order to withdraw the significant amounts of cash that were disbursed through the programs he targeted, Fiege established bank accounts in other peoples’ names, and requested bank cards to be issued by mail, which he had sent to real addresses where he would then intercept the mail before the actual residents had a chance to.
On July 14, 2021, Fiege pleaded guilty to one count of wire fraud and one count of aggravated identity theft. Fiege was sentenced yesterday in U.S. District Court before Senior Judge Michael J. Davis. During the pendency of the federal case, Fiege also pled guilty in two separate stalking cases involving different women in Washington County, Minnesota and St. Louis County, Minnesota.
This case was the result of an investigation conducted by the United States Postal Inspection Service, the Small Business Administration Office of the Inspector General, the Minnesota Bureau of Criminal Apprehension, and the Duluth Police Department.
Assistant U.S. Attorney Lindsey E. Middlecamp prosecuted the case.
Disbarred New York Attorney Sentenced to Three Years in Prison for Multi-Million Dollar Securities Fraud SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that JAESON BIRNBAUM, a disbarred lawyer, was sentenced today to 36 months in prison for defrauding investors in his now bankrupt litigation finance firm, “Cash4Cases.” BIRNBAUM previously pled guilty to securities fraud for misappropriating investors funds and pledging the same lawsuit recoveries as collateral to multiple parties, contrary to his representations. U.S. District Paul A. Crotty imposed the sentence in Manhattan federal court.
U.S. Attorney Damian Williams stated: “As a lawyer Birnbaum understood the importance of honest dealings and putting his investors first. Instead, Birnbaum chose to lie to his investors in order to steal their money and cover up his fraud by doctoring company records. Through today’s sentence, Birnbaum has been held accountable for this serious fraud.”
According to statements in the Information, and other public filings and statements in court:
From at least in or about 2017 through in or about 2019, BIRNBAUM obtained more than $3 million in investments for Cash4Cases based on fraudulent misrepresentations. These investments were in the form of promissory notes, titled “Investor Security Agreements” (“ISAs”), which purported to provide the relevant investors with a security interest in the recoveries associated with certain specified lawsuits that were ostensibly purchased by Cash4Cases. In fact, in some instances, the lawsuits that were either never funded by Cash4Cases or BIRNBAUM had previously pledged their recoveries to other parties.
To help carry out his fraud, BIRNBAUM directed an employee to falsify his company’s books and records to make it appear that the recoveries from lawsuits that had already been paid out were still available to be pledged as collateral to new investors.
BIRNBAUM also misappropriated a substantial portion of investors’ funds for his personal use and to make promised payments to earlier investors in Ponzi-like manner. As one example, BIRNBAUM obtained a $1 million investment for Cash4Cases in September 2019. Prior to this investment, BIRNBAUM told the investor that Cash4Cases would use the money exclusively for advances to litigants. However, contrary to this representation, BIRNBAUM used the money to make a $530,000 down payment on the purchase of a house and to pay for other personal expenses and Ponzi-like payments to earlier investors.
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BIRNBAUM, 48, of Boca Raton, Florida, was also sentenced to a three-year term of supervised release. He was further ordered to pay restitution to his victims in the amount of $2,661,072.24 and to forfeit $2,661,072.24 in fraud proceeds.
Mr. Williams praised the investigative work of the United States Postal Inspection Service and thanked the U.S. Securities and Exchange Commission for its assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant United States Attorney Daniel Loss is in charge of the prosecution.
DOJ grants fund mental health crisis response teams, and sexual assault awareness training in schoolsRead the Press Release
Seattle – Three locations in Western Washington will receive funding from the U.S. Department of Justice for alternative policing methods and sexual assault education, announced U.S. Attorney Nick Brown. Bellevue, Longview, and a program in the Renton School District will receive Byrne Grants through the Bureau of Justice Assistance.
“The Department of Justice is always looking for programs that can increase community safety. These three innovative approaches focus not on punishment, but on supporting members of our community outside the criminal justice system,” said U.S. Attorney Brown. “Our hope is that program successes can be replicated in other locations, expanding the toolkit for dealing with mental health challenges that impact our community.”
Bellevue and Longview will receive $915,000 and $292,000 respectively to create and augment programs in which mental health professionals respond to 911 calls with behavioral crisis components. Bellevue plans to launch a permanent Community Crisis Assistance Team (CCAT) with a mental health professional trained in identifying, understanding, and responding to signs of mental illness, developmental or intellectual disabilities, and substance abuse disorders. The city of Longview plans to augment a pre-existing mental health field response program by hiring two additional mental health professionals. Each of these programs seeks to provide alternative, non-punitive support to those experiencing mental health difficulties while continuing to protect their communities.
The King County Sexual Assault Resource Center (KSARC) will receive $250,000 to support Making Prevention Possible (MPP), a multi-year, multi-strategy sexual assault response and prevention program in two Renton Public Schools. The program will be part of the curriculum in Dimmitt Middle School (starting in sixth grade) and in Renton High School (continuing through 12th grade). MPP hopes to create a measurable difference in the understanding of sexual assault, how to support survivors, and how to prevent future violence.
The Byrne Grants are named in honor of New York City Police Officer Edward R. Byrne, who was killed in the line of duty on February 26, 1988. Officer Byrne was just 22 years old.
Cross Plains Man Sentenced to 7 Years for Distributing Child PornographyRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Jake Blankenheim, 48, of Cross Plains, Wisconsin was sentenced today by Chief U.S. District Judge James D. Peterson to 7 years in federal prison, followed by 12 years of supervised release, for distributing child pornography. He pleaded guilty to this charge on April 15, 2022.
The Federal Bureau of Investigation uncovered Blankenheim’s online distribution of child pornography after receiving information that he shared photos of child pornography with an undercover officer on Gigatribe, an online peer-to-peer file sharing network. Agents executed a search warrant at the defendant’s home, where they located two computer hard drives containing additional files of child pornography. A forensic examination of those hard drives revealed that Blankenheim possessed over 3,000 photos and videos of child pornography, including files that depicted the sexual abuse of infants and toddlers. The examination also revealed that he had traded and discussed child pornography on Gigatribe for several years.
In sentencing Blankenheim, Judge Peterson reasoned a sentence above the 5-year mandatory minimum was warranted because of the length of time the defendant was involved in the trading and viewing of child pornography. Judge Peterson noted that the defendant’s recirculation of child pornography has real consequences for the victims in those images, who continue to suffer harm as images of their abuse are further shared.
The charge against Blankenheim was the result of an investigation conducted by the Federal Bureau of Investigation, with assistance from the Swiss National Police. Assistant U.S. Attorney Taylor L. Kraus prosecuted this case.
Coxsackie Felon Indicted for Illegally Possessing AR-15Read the Press Release
ALBANY, NEW YORK – Shawn Ubrich, age 50, of Coxsackie, New York, was arraigned today on a charge of illegally possessing a firearm as a convicted felon.
The announcement was made by United States Attorney Carla B. Freedman; John B. DeVito, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); and Kevin Bruen, Superintendent of the New York State Police.
According to the indictment, Ubrich, a convicted felon, possessed an AR-15 rifle in Greene County, New York, on October 5, 2021. The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
Ubrich was arraigned today in Albany, before United States Magistrate Judge Christian F. Hummel, and held in custody pending a detention hearing scheduled for July 29.
The charge against Ubrich carries a maximum sentence of 10 years in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case is being investigated by ATF and the New York State Police, and is being prosecuted by Assistant U.S. Attorney Benjamin S. Clark.
Convicted Felon Admits Drug Offenses, and Possessing Three Firearms with Extended MagazinesRead the Press Release
NEWARK, N.J. –An Essex County, New Jersey, man today admitted possessing quantities of heroin and cocaine he intended to distribute, and possessing several firearms, including an AM-15 rifle, U.S. Attorney Philip R. Sellinger announced.
Cedric Lewis, 31, of Bloomfield, pleaded guilty by videoconference before U.S. District Judge Brian R. Martinotti to a superseding information charging him with two counts of possession of a firearm and ammunition by a convicted felon and two counts of possession with intent to distribute controlled substances.
According to documents filed in this case and statements made in court:
On Sept. 20, 2020 investigators learned that Lewis was in a car in the Newark/Elizabeth area while he possessed a quantity of heroin and cocaine he intended to sell, as well as an AM-15 rifle with a high-capacity magazine that contained 30 rounds of .300 caliber ammunition. Law enforcement officers subsequently lawfully searched Lewis’s apartment recovered a 9 millimeter pistol with an extended magazine; a .40 caliber pistol with an extended magazine; drug paraphernalia and a scale; $800 in cash, and heroin and cocaine that Lewis intended to sell.
The narcotics offenses each carry a maximum potential penalty of 20 years in prison, and a fine of $1 million. The counts of being a felon in possession of a firearm and ammunition each carry a maximum potential penalty of 10 years in prison, and a maximum fine of $250,000. Sentencing is scheduled for Dec. 6, 2022.
U.S. Attorney Sellinger credited members of the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura; special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the direction of Special Agent in Charge Jeffrey L. Matthews; deputy marshals with the U.S. Marshals Service in the District of New Jersey, under the supervision of U.S. Marshal Juan Mattos Jr.; and deputy marshals with the U.S. Marshals Service in the Northern District of Georgia, under the supervision of U.S. Marshal Michael S. Yeager, with the investigation leading to today’s guilty plea. He also thanked the Bloomfield Police Department for its assistance.
The government is represented by Assistant U.S. Attorney Benjamin Levin of the U.S. Attorney’s Office National Security Unit in Newark.
Columbia Man Pleads to Federal Firearm ChargeRead the Press Release
COLUMBIA, SOUTH CAROLINA —Ernest Durane Mack, a/k/a “Marcus Mack,” 35, of Cayce, has pleaded guilty to being a felon in possession of a firearm and ammunition.
Evidence obtained in the investigation revealed that on July 26, 2019, a trooper with the South Carolina Highway Patrol initiated a traffic stop on St. Andrews Road in Columbia on a vehicle driven by Mack after recognizing it to be a vehicle he had attempted to stop a week earlier for a traffic violation, but which fled during the chase. After stopping the vehicle, Mack exited and fled on foot. Officers located Mack in a nearby apartment complex breezeway and observed him with a handgun, which he then threw towards the officers. Mack advised officers that he fled because he had the handgun in the car. The investigation revealed that the handgun had previously been reported stolen in Spartanburg County. Mack, who was on state probation at the time of the offense, has prior state convictions for trafficking cocaine (2 separate counts), forgery, possession of a controlled substance, and criminal domestic violence 1st degree (2 separate counts).
On the firearm charge, Mack faces a maximum penalty of 10 years in federal prison. He also faces a fine of up to $250,000, restitution, and three years of supervision to follow the term of imprisonment. United States District Judge Mary Geiger Lewis accepted the guilty plea and will sentence Mack after receiving and reviewing a sentencing report prepared by the United States Probation Office.
This investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the South Carolina Highway Patrol is part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant U.S. Attorney Stacey D. Haynes is prosecuting the case.
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Cleveland Man Charged with Fraudulently Obtaining More Than $400k in Pandemic Unemployment Insurance BenefitsRead the Press Release
First Assistant U.S. Attorney Michelle M. Baeppler announced today that a Cleveland man was charged in a 16-count indictment with illegally obtaining more than $400,000 in pandemic unemployment insurance benefits using other people’s personal identifying information.
Osi Mokwunye, 44, was charged with one count of conspiracy to commit mail and wire fraud, five counts of mail fraud, five counts of wire fraud, and five counts of aggravated identity theft.
According to court documents, from July to November 2020, the defendant and his coconspirators are accused of submitting and causing the submission of fraudulent applications for pandemic unemployment insurance benefits to the California Employment Development Department (EDD), and other State Workforce Agencies around the country.
As part of the scheme, the indictment states that the members of the conspiracy knowingly made false statements and omissions on pandemic unemployment insurance benefits applications regarding employment history, residency and more to appear eligible to receive benefits. As a result, it is alleged that the defendant and his coconspirators caused the California EDD and other State Workforce Agencies to approve more than $400,000 in unemployment insurance benefits in the names of unwitting individuals. According to the indictment, the benefits were pre-loaded on bank-issued debit cards and sent through the U.S. mail to the defendant’s home. After receiving the debit cards, it is alleged that the defendant used the cards to make cash withdrawals at various ATMs in the Northern District of Ohio.
An indictment is only a charge and is not evidence of guilt. The defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendant’s sentence will be determined by the court after a review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offenses and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum; in most cases, it will be less than the maximum.
The FBI Cleveland, Department of Labor (DOL) and the United States Postal Inspection Service (USPIS) investigated this case. This case is being prosecuted by Assistant U.S. Attorney Erica D. Barnhill.
Clay County Man Pleads Guilty to Attempting to Use A 9-Year-Old Child to Produce Sexually Explicit VideosRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces that Garrett Eric Weber (31, Green Cove Springs) has pleaded guilty to attempting to entice and use a 9-year-old child to produce videos of the child being sexually abused. Weber faces a minimum mandatory penalty of 15 years, and up to 30 years, in federal prison and a potential lifetime term of supervised release. Weber was arrested on a federal warrant by the Green Cove Springs Police Department during a traffic stop on July 5, 2021, and he has been detained since that time. His sentencing hearing has not yet been scheduled.
According to court documents, in 2020, Weber, using the name “BUBBLESXD_90,” uploaded an image depicting the sexual abuse of a child to a chat group on a popular social media application (app). This upload was eventually detected by law enforcement officers in Wisconsin. Further investigation by the FBI ultimately resulted in the identification of Weber. In March 2021, an undercover FBI agent, posing as the parent of a young child, engaged in online conversation with Weber using the app. After some discussion and being told that the “child” was 9 years old, Weber offered to serve as the “child’s” trainer by engaging in sexual activity with the “child.” He requested that the “parent” take an explicit photo of the “child” for him and provided specific instructions on how to accomplish it. Weber advised that he wanted the “parent” to film him as he sexually abused the “child,” and that the resulting recording “would be the best [child pornography] vid ever.” Weber sent the “parent” several videos over the internet that depicted the sexual abuse of young children to demonstrate exactly how he planned to molest the “child.”
After his arrest, Weber admitted to FBI agents that he was in fact “BUBBLESXD_90,” that he had engaged in “extremely descriptive” and “horrible” online conversations with the “child’s” parent, and that he had distributed videos of very young children being sexually abused using the internet. Weber acknowledged that the “[e]vidence is staggeringly harsh against [him]” in this case.
This case was investigated by the Green Cove Springs Police Department, the Florida Fish and Wildlife Conservation Commission, the Winnebago County (Wisconsin) Sheriff’s Office, the Clay County Sheriff’s Office, the Jacksonville Sheriff’s Office, and the Federal Bureau of Investigation in Milwaukee and Jacksonville, with assistance from the National Center for Missing and Exploited Children (NCMEC). It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Charleston Man Pleads Guilty to COVID-19 Relief Fraud SchemeRead the Press Release
CHARLESTON, W.Va. – A Charleston man pleaded guilty today to wire fraud, admitting to a scheme to defraud the Paycheck Protection Program (PPP) of over $41,666 in COVID-19 relief loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
According to court documents and statements made in court, Malik Breckenridge, 26, of Charleston, applied for and obtained two PPP loans on behalf of his purported business, Malik Breck, between April 4, 2021, and August 10, 2021. Malik Breck was not a registered business entity in West Virginia and was not engaged in substantial, legitimate business activity on or before February 15, 2020. Breckenridge admitted that he falsely stated that Malik Breck was established in 2014 and operating on February 15, 2020. Breckenridge further admitted that he submitted a false Internal Revenue Service (IRS) Form 1040, Schedule C Profit or Loss from Business reporting that Malik Breck had earned $180,489 in gross income during 2019.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of forgivable loans to small businesses for job retention and certain approved expenses, through the PPP. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities.
A Florida lender processed both of Breckenridge’s PPP loan applications. Each loan totaled $20,833. Breckenridge admitted that he later applied to have both PPP loans forgiven even though he had not spent the loan proceeds on permissible business expenses. The SBA forgave the loans on August 8, 2021.
“This is the first fraud conviction related to COVID-19 in the Southern District of West Virginia, and sadly, it probably won’t be the last,” said United States Attorney Will Thompson. “PPP funds offered a lifeline to small businesses during the pandemic, and this office is determined to hold accountable those who undermine these needed programs through fraud and abuse. This office will continue to prosecute those who take advantage of government programs that are designed to help people who are hurting.”
Thompson commended the West Virginia State Police and the United States Secret Service for their investigative work in the case.
Breckenridge is scheduled to be sentenced on November 17, 2022, and faces a maximum penalty of 20 years in prison, three years of supervised release and a $250,000 fine. Breckenridge also agrees that he owes $41,666 in restitution.
United States District Judge Irene C. Berger presided over the hearing. Assistant United States Attorney Kathleen Robeson is prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-84.
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Canadian Citizen Charged with Interference with Flight CrewRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Sebastian Bien-Aine, age 20, a citizen of Toronto, Canada, was indicted by a federal grand jury on July 26, 2022, for a charge of interference with flight crew.
According to United States Attorney Gerard M. Karam, the indictment alleges that on July 24, 2022, Bien-Aine was a passenger on the Porter Airlines, Flight 134, that departed Newark, New Jersey with final destination of Toronto, Canada. During the flight, Bien-Aine left his seat and charged the flight deck door and attempted to enter the door which ultimately required the plane to land in Avoca, Pennsylvania. Bien-Aine was taken into custody by the FBI upon arrival in Avoca.
This case was investigated by the FBI and is being prosecuted by Assistant United States Attorney Todd K. Hinkley.
The maximum penalty under federal law for this offense is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Camden County Man Sentenced to Three Years in Prison for Role in Stolen Identity Refund Fraud SchemeRead the Press Release
CAMDEN, N.J. – A Camden County, New Jersey, man was sentenced today to 36 months in prison for his role in a scheme to obtain money through fraudulently obtained refund checks issued by the U.S. Treasury, U.S. Attorney Philip R. Sellinger announced.
Jorge Gutierrez, 43, of Merchantville, New Jersey, previously pleaded guilty before U.S. District Judge Robert B. Kugler to an indictment charging him with conspiracy to defraud the United States. Judge Kugler imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
On March 28, 2018, Gutierrez, Alberto Sanchez, Awilda Henriquez and Roque Bisono were indicted by a federal grand jury. According to the indictment, Gutierrez, Henriquez, Bisono, Sanchez, and their conspirators obtained stolen identities of residents of Puerto Rico to file fraudulent income tax returns seeking federal tax refunds to which the conspirators were not entitled. The objective in doing so was to falsely and fraudulently generate income tax refund checks issued by the U.S. Treasury. The conspirators recruited mail carriers from the U.S. Postal Service as part of the scheme to steal the tax refund checks from the mail. The mail carriers were paid for every U.S Treasury check that was stolen. The conspirators paid “check couriers” to cash the tax refund checks in a variety of ways, including at check cashing businesses in and around Camden. The check couriers presented false and fraudulent identifications at the check cashing businesses matching the names on the tax refund checks in order to cash the checks. In total, the scheme caused $565,091 in losses to the U.S. Treasury.
Gutierrez admitted that between April 2014 and August 2014, he was a member of the conspiracy that took 93 U.S. Treasury Refund checks that had been placed in the mail stream to be delivered to addresses on a postal mail route in Pennsauken. He admitted that he helped a man nicknamed “Chepe” steal money from the United States government.
In addition to the prison term, Judge Kugler sentenced Gutierrez to three years of supervised release and ordered restitution of $565,091.
Henriquez was previously convicted at trial and is scheduled to be sentenced on Aug. 29, 2022. Sanchez previously pleaded guilty and was sentenced to 45 months in prison. Bisono previously pleaded guilty and was sentenced to time served.
U.S. Attorney Sellinger credited special agents of the IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy Tomlins in Newark and Special Agent in Charge Yury Kruty in Philadelphia; and special agents of the U.S. Postal Service Office of Inspector General, Northeast Area Field Office, under the direction of Special Agent in Charge Matthew Modafferi, with the investigation leading to today’s sentencing. He also thanked the U.S. Postal Inspection Service for its assistance.
The government is represented by Assistant U.S. Attorney Jason M. Richardson and Assistant U.S. Attorney Christina O. Hud of the Criminal Division in Camden.
California Man Sentenced for Threats Made Against Local United States CongressmanRead the Press Release
PENSACOLA, FLORIDA – Eugene Huelsman, 59, of Thousand Oaks, California, was sentenced to six months home confinement on one count of transmission of a threat in interstate commerce, announced Jason R. Coody, United States Attorney for the Northern District of Florida.
“The free exercise of speech is central to our democracy,” stated U.S. Attorney Coody. "However, the communication of threats of physical violence, in this case by an individual who had previously made and been investigated for similar threats of violence, is clearly unlawful. With our law enforcement partners, we are committed to protecting public safety for all citizens. Today’s sentence acknowledges the defendant’s repeated threats of violence and should serve as a significant deterrent to those who would threaten violence against others rather than engage in lawful debate.”
At the hearing, Huelsman was sentenced for telephonic threats he made, on January 9, 2021, when he called United States Congressman Matthew Gaetz’s congressional district office in Pensacola, Florida. When no one answered the call, Huelsman left a profanity laced voicemail threatening to kill Congressman Gaetz. This included threatening to “put a bullet in” Congressman Gaetz and members of his family. Huelsman also threatened that he was “coming for” the Congressman, and that he hoped the Congressman would “die in a shallow grave.”
The United States Capitol Police were contacted when the threat was made, which triggered security protocols related to the victim. The investigation revealed this was not the first time Huelsman made threats involving political figures. Huelsman had previously been investigated by the United States Secret Service for threatening a member of a former President’s family on social media.
"Words matter," said Sherri E. Onks, Special Agent in Charge of the FBI Jacksonville Division, "and this sentencing should serve as a warning. Everyone has the right to express their opinion, but when you harass, intimidate, and threaten violence against others, it's a federal crime that will not be tolerated. The FBI and our law enforcement partners will work to hold you accountable."
Huelsman’s home confinement will be followed by five years’ probation, and a $10,000 fine.
The case was investigated by the United States Capitol Police and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney David L. Goldberg.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
California Man Pleads Guilty in Conspiracy that Brought Mexican Cocaine through Los Angeles to Western PARead the Press Release
PITTSBURGH, PA – A former resident of Los Angeles, California pleaded guilty in federal court to violating the federal narcotics laws, United States Attorney Cindy K. Chung announced today.
Juan Carlos Alejandres, 28, formerly of Los Angeles, California, pleaded guilty to an Indictment charging him, and 26 other codefendants, with conspiracy to possess with intent to distribute and to distribute five kilograms or more of cocaine before United States District Judge W. Scott Hardy.
In connection with the guilty plea, the Government advised the Court that the prosecution of Alejandres arose out of a two-year investigation into a drug trafficking organization whose members distributed kilograms of cocaine, sourced from Mexico, throughout the United States (in California, Arizona, Pennsylvania, and elsewhere). The Court was advised that alleged co-conspirators obtained kilograms of cocaine in Los Angeles, California, and sent them to the Western District of Pennsylvania (and elsewhere) through the United States Postal Service. In connection with his guilty plea, Alejandres admitted that he distributed kilograms of cocaine, obtained from a Mexican source of supply, to alleged codefendants who, in turn, trafficked the cocaine to Western Pennsylvania, and elsewhere in the United States, for redistribution. Federal agents intercepted numerous communications between Alejandres and alleged codefendants evidencing his distribution of kilograms of cocaine, and some of those narcotics were intercepted by federal agents while in transit from California to Pennsylvania and elsewhere. By pleading guilty, Alejandres admitted that the total quantity of cocaine attributable to him, through his conduct and the foreseeable conduct of co-conspirators, was at least 50 kilograms but less than 150 kilograms. The Court was advised that agents seized in excess of 100 kilograms of cocaine during its two-year investigation into the drug trafficking organization, of which Alejandres admitted to being a member.
Judge Hardy scheduled sentencing for Dec. 1, 2022. The law provides for a total sentence of not less than 10 years and not more than life imprisonment, a fine of up to $10,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jerome A. Moschetta is prosecuting this case on behalf of the government.
The Drug Enforcement Administration (in Pittsburgh, PA) and the United States Postal Service – Office of Inspector General led the multi-agency investigation that included members of the Drug Enforcement Administration (in Los Angeles, CA; in Tucson, AZ; in New York, NY; in Nashville, TN; at the Special Operations Division; and in Mexico); the Pennsylvania Office of Attorney General; the Los Angeles Police Department; the Pittsburgh Bureau of Police; the Allegheny County Police Department; the New Castle Police Department; the Monessen Police Department; and the Pennsylvania State Police.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
CEO of Reality TV Production Companies Sentenced to One Year in Federal Prison for Defrauding Private Lender Out of $2 MillionRead the Press Release
LOS ANGELES – The CEO of two Hollywood production companies that specialize in reality-television programming was sentenced today to 12 months and one day in federal prison for fraudulently obtaining a $2 million business loan using fabricated documents and by misrepresenting his companies’ financial circumstances.
Jonathan Lee Smith, 41, of Koreatown, was sentenced by United States District Judge John F. Walter, who also ordered Smith to pay $2 million in restitution.
Smith managed and owned two Hollywood-based production companies, Hoplite Entertainment Inc., and Hoplite Inc. To convince a private lender to fund a $2 million loan in 2020, Smith falsely represented that his two companies had accounts receivable of $3,348,000, and he submitted falsified license agreements and other forgeries to back up the claim.
Based on these and other misrepresentations, the victim lender agreed to the loan and, on September 30, 2020, transferred $1,951,416 to a Hoplite Entertainment bank account.
To convince the private lender to give him additional time to repay the loan, court documents state, Smith falsely represented that payment was imminent. He also emailed a fake record showing a $100,000 wire payment from Hoplite, Inc. to the lender. In fact, the loan was never repaid.
“[Smith] is an experienced businessman in the entertainment industry,” prosecutors argued in a sentencing memorandum. “He knew it was wrong to lie to secure a $2 million loan but did it anyway. And rather than make just one misrepresentation, [Smith] backed up his lie with counterfeit documents to show fake accounts receivable and fictitious incoming payments. The result was straightforward and predictable: [Smith’s] financial circumstances were inadequate to repay the loan he received from the private lender, and the victim has lost $2 million because of [Smith’s] false pretenses.”
The FBI investigated this matter. The United States Trustee's Los Angeles Office provided assistance.
Assistant United States Attorney Alexander B. Schwab of the Major Frauds Section prosecuted this case.
Brooklyn Business Owner Admits Tax EvasionRead the Press Release
NEWARK, N.J. – A Brooklyn, New York, man admitted underreporting the proceeds of his buyout agreement on his income tax return, U.S. Attorney Philip R. Sellinger for the District of New Jersey and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division announced today.
David Seruya pleaded guilty on July 28, 2022, before U.S. District Judge Julien X. Neals in Newark federal court charging him with three counts of tax evasion.
According to court documents filed in this case and statements made in court:
From 2009 to 2014, Seruya was an original owner and shareholder of a New Jersey-based home warranty business. In 2014, Seruya entered into a buyout agreement whereby he agreed to sell his shares of stock back to the business and exit the company. In exchange for his stock shares, the home warranty company agreed to pay Seruya $4.1 million, which included a lump sum payment and installment payments spread out over 24 months. Seruya underreported to his return preparer the actual amount of income he received from the sale of his stock. In addition, Seruya did not inform his return preparer about income received from canceled mortgage debt. As a result, Seruya caused his return preparer to prepare and file false income tax returns for the tax years 2014 through 2016. Seruya admitted to evading taxes for calendar years 2010-2013. In total, Seruya’s tax evasion caused a loss to the IRS of more than $1.1 million.
The counts to which Seruya pleaded guilty are each punishable by a maximum of five years in prison and a fine of $100,000, or twice the gross pecuniary gain or loss, whichever is greatest. Sentencing is scheduled for Dec. 14, 2022.
U.S. Attorney Sellinger and Acting Deputy Assistant Attorney General Goldberg credited special agents of IRS - Criminal Investigation, under the direction of Special Agent in Charge Tammy Tomlins in Newark, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorney Carolyn Silane for the District of New Jersey and Trial Attorney Shawn Noud of the Tax Division.